The Rs 3,018-crore initial public offer (IPO) of IndiGo’s parent InterGlobe Aviation saw strong demand and was over-subscribed by 6.15 times on the last day of bidding on Thursday. However, the portion set aside for retail investors witnessed only 92 per cent subscription, while the employees category was subscribed just 12 per cent. The IPO generated demand worth about Rs 18,000 crore, as it received bids for 18,53,10,405 shares against the total issue size of 3,01,22,088 shares, says data available with the NSE. The quota reserved for qualified institutional buyers (QIBs) saw tremendous response with over-subscription of 17.80 times. Non-institutional investors category was also over-subscribed 3.57 times. “There’s a perception among retail investors that the IPO was overpriced and the shares will be available at a discount after listing on the stock exchange. This is not a reflection on the airline’s performance. Retail investors are looking at listing gains. The response from its employees was also lukewarm,” said an investment banker. This is the biggest IPO in the Indian market since Bharti Infratel’s over Rs 4,000-crore offer in December, 2012. Investor Rakesh Jhunjhunwala and foreign entities, including Acacia Partners LP, which is said to be associated with legendary investor Warren Buffett, are among those who have purchased shares of the airline. InterGlobe has raised Rs 832 crore from anchor investors by allotting shares at the upper limit of price band at Rs 765 apiece. The offer invites subscription in the price band of Rs 700-765 per share. The company had reduced its initial share sale size to a little over Rs 3,018 crore last week, with three of the promoters deciding to sell less number of shares than proposed earlier.
